Apple’s price coup

Samuel Buchmann

6/3/2026

Translation: Megan Cornish

Thanks to a hugely efficient supply chain, Apple’s offering a laptop at a competitive price which should give its rivals a run for their money.

With the MacBook Neo, Apple’s moving into the budget laptop market. Meanwhile, the Air and Pro models are getting more storage space, but their prices in Switzerland aren’t rising accordingly. The current storage crisis seems to have bypassed Cupertino so far, which is forcing other manufacturers to raise prices. This makes the new generation of MacBooks more attractive than ever, and could see Apple making significant gains in market share.

Meticulously tailored to its target group

At 599 dollars, the price of the MacBook Neo is at the lowest end of the previously speculated price range. It costs 579 francs in Switzerland and 699 euros in Germany. Education savings take off another 100 francs or euros, so students and teachers can buy a brand new Apple computer for 479 francs. This drastically lowers the barrier to entry into the Mac ecosystem.

Are there any compromises? Of course there are. Tech nerds might turn up their noses at the 2024 iPhone chip, limited RAM and minimalist ports. But that doesn’t matter to the Neo’s target audience. It’s far more important that the thin aluminium unibody feels high-quality. That the display looks top-notch for this price range. That the battery lasts all day. And that the prestigious bitten apple logo’s emblazoned on the back.

Anyone who mainly uses the MacBook Neo to watch YouTube and use chatbots is unlikely to complain about a lack of performance. Its works arguably slightly better than the earlier M1. The software and hardware are perfectly coordinated, allowing them to get the most out of the smartphone chip. Apple’s focus on vertical integration and its own components pays off particularly well in low-end devices. No other manufacturer can compete at this price point.

Supply Chain maestro Tim strikes again

This also applies to production. It’s no coincidence that the MacBook Neo uses an iPhone chip. Firstly, it’s based on the same ARM architecture as Apple’s M-series chips and can easily run macOS. Secondly, this saves Apple the development costs of a new low-end chip. Thirdly, there was no need for a new production facility. Instead, Apple seamlessly continues to use a manufacturing process that was built for the iPhone 16 Pro. This was produced in huge quantities, which reduces the cost per unit. Any remaining stock can now be recycled.

To further reduce manufacturing costs, Apple uses a binned version of the A18 Pro in the MacBook Neo. While the chip in the iPhone 16 Pro had six GPU cores, the MacBook Neo only has five. Deactivating one core means less waste, as not every wafer needs to be perfect. The slightly reduced graphics performance will hardly be noticeable to the target audience.

This highly efficient production process bears the unmistakable hallmark of Tim Cook. The CEO’s often criticised for a lack of innovation. However, with products such as the MacBook Neo, customers reap the benefits of Cook’s optimised supply chains. Unlike with high-end devices, Apple’s likely to keep its profit margin low. The goal isn’t to maximise profit; it’s to capture market share. This results in an entry-level product that offers excellent value for money.

Storage crisis? What storage crisis?

The new low-end MacBook also makes sense in light of the rest of Apple’s product range. Previously, the MacBook Air occupied this niche. However, the M-series chips have made such significant strides in the last five years that even the base M5’s overkill for a lot of applications, handling tasks that previously required a Pro-level chip. And very few people actually need a MacBook Pro with an M5 Pro or even an M5 Max these days.

In these price ranges, too, Apple’s taking advantage of the current situation and its sheer market power. This means it can secure long-term supply contracts on the best possible terms, meaning that it’s less affected by the storage crisis than other manufacturers – at least for now. Plus, the profit margin on SSD and RAM upgrades for Macs has long been so huge that Apple has more leeway.

Instead of using the storage crisis as a reason to hike prices, Tim Cook’s pursuing the same strategy as he did with the MacBook Neo: a bigger market share instead of higher profit margins. Apple’s keeping the prices of the MacBook Air and MacBook Pro steady. In Switzerland, it’s even dropping due to the strong Swiss franc. This is because the base configurations are getting a larger SSD without the price of the devices increasing.

So, does that mean all MacBooks are a bargain? No. SSD and RAM upgrades are still expensive. The higher the configuration, the worse the value for money. Unlike in the past, this is increasingly true for Windows laptops as well. Dell, Asus and Lenovo are all warning of price increases. «The Death of the Cheap Laptop Is Coming,» says the New York Times.

Apparently, Apple didn’t get the memo.

Samuel Buchmann

Senior Editor

Samuel.Buchmann@digitecgalaxus.ch

My fingerprint often changes so drastically that my MacBook doesn't recognise it anymore. The reason? If I'm not clinging to a monitor or camera, I'm probably clinging to a rockface by the tips of my fingers.

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